Flowserve Corporation (FLS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,167,310 | 1,224,150 | 1,261,770 | 1,717,910 | 1,365,980 |
| Total assets | US$ in thousands | 5,108,720 | 4,790,630 | 4,749,770 | 5,314,680 | 4,938,280 |
| Debt-to-assets ratio | 0.23 | 0.26 | 0.27 | 0.32 | 0.28 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,167,310K ÷ $5,108,720K
= 0.23
The debt-to-assets ratio of Flowserve Corp. has exhibited a declining trend from 0.32 in 2020 to 0.24 in 2023. This indicates that the company has been reducing its reliance on debt financing in proportion to its total assets over the years. A lower debt-to-assets ratio signifies a stronger financial position and lower risk as it implies that a smaller portion of the company's assets is financed through debt.
The decrease in the ratio could be attributed to various factors such as the company's debt repayment strategies, improved profitability leading to increased equity, or a more conservative approach to capital structure management. Overall, a declining trend in the debt-to-assets ratio reflects a positive financial health and efficiency in managing the company's capital structure by minimizing the potential risks associated with excessive debt.
Peer comparison
Dec 31, 2023